RMG exports record robust growth for market diversification

---

Monira Munni Apparel exports to new destinations registered a robust growth in the first half of the current fiscal year (FY 2012-13), as the manufacturers looked beyond the traditional western markets in the backdrop of the ongoing financial meltdown there. Manufacturers said they had started diversifying the markets in the face of the falling demand for local items during the global recession in 2007 and then in 2008. The cash incentive offered to the exporters by the government also encouraged the manufacturers to explore the new destinations, they said. The new emerging markets are Australia, Japan, China, Russia, South Africa, Korea, India, Brazil, Chile, Mexico and Turkey. Although the growth in exports to the new destinations is phenomenal, it is not that high in terms of value compared to the traditional markets, according to the Export Promotion Bureau (EPB) data. Of the total earnings worth $ 9.94 billion from exports of both woven and knit products in the July-December period of the current fiscal year, about $ 996.89 million came from the new export destinations, with a rise of 24.11 per cent over the corresponding period of the last fiscal year. Of the total earnings, $ 5.81 billion came from Europe, $ 2.27 billion from the US, $478.92 million from Canada and the rest from other countries. The non-traditional market contribution increased to 10.02 per cent in the first half of the current fiscal which was 8.69 per cent in last fiscal while EU, US accounted for 58.80 fall from 59.74 per cent and 22.87 fall from 23.91 per cent respectively. Apparel exports grew by 70.07 per cent in Russia, 64.98 per cent in Australia, 47.92 per cent in Korea and 39.60 in Chile during the July-December of 2012-13 fiscal. "The demand for Bangladeshi products is increasing significantly in China, Russia, Japan, India and other new destinations," Vice Chairman of EPB Shubhashish Bose told the FE. Dependence on the limited traditional markets is unwise for the country, he said, adding that now it is the time to go for product and market diversification. The high quality of products and the competitive edge were the main driving force behind the rise in export of garment items to the new destinations, Vice President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Md Hatem said. President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Shafiul Islam Mohiuddin earlier said Korea could be the fourth largest new destination apart from China, India and Japan for Bangladesh's apparel products. He said the Batexpo 2012 got good response from the buyers especially from China, Japan, Brazil, Switzerland and New Zealand. Chairman of Sterling Group Siddiqur Rahman said Bangladesh would not face any difficulty to serve even the most high-end customers as the country has already improved its capacity to grab the upscale markets. "Cash incentive encourages and helps exporters explore the new destinations but the government should continue the support for years to come as the market exploration is still in its infancy," he said. Former BKMEA president Fazlul Huq said though the response from the new emerging markets was very good, it would take time to explore these markets fully. "No doubt, Japan is a good one. Similarly Russia is possibly the biggest among the new destinations," he said. To grab the new markets, the government-to-government negotiation is a must, apparel manufacturers said adding the government should strengthen the commercial wings of its foreign missions in the new markets to help maintain the higher export growth.